While Bitcoin (BTC) was running from record to record, Ethereum (ETH), which fell behind BTC, broke its 2021 ATH and set a new record a week ago.
While Ethereum surpassed $4,900, the subsequent bearish wave caused the price to drop to $4,200 levels.
At this point, while the market is predicting that Ethereum could experience a correction to the $3,000 level, one analyst said that this could be a huge bear trap.
Cryptocurrency analyst Johnny Woo, in his analysis from his X account, said that ETH could form a sharp correction, or a bear trap, in September before recovering in October.
Ethereum could surprise many bears next month, according to the analyst, where it could drop to the $3,350 support level in September, creating a bear trap, before rebounding in October.
Pointing out that a head-and-shoulders chart formation has formed on the Ethereum chart, Woo stated that this formation may initially strengthen the downward trend, but ETH will experience a recovery triggered by the “October” trend, which is historically known as the upward period.
Finally, Woo noted that similar formations have occurred frequently in the past, and that a bearish forecast for September and an upward forecast for October is a reasonable scenario.
*This is not investment advice.
